Course
Corporate Finance (BØK260)
This introductory course in finance primarily focuses on how companies select investments, and then determine financing for the investment decisions. The purpose of the course is to give the students the necessary knowledge about the concepts and methods used to make investment decisions. The main focus is on financial investments (stocks and bonds), project financing and various investment decisions for projects are reviewed. An introduction to options is also given. The language of instruction and the exam language is English .
Dette er emnebeskrivelsen for studieåret 2025-2026. Merk at det kan komme endringer.
Semesters
- 2025 Autumn
- 2024 Autumn
- 2023 Autumn
- 2022 Autumn
- 2021 Autumn
- 2020 Autumn
- 2019 Autumn
- 2018 Autumn
- 2017 Autumn
- 2016 Autumn
- 2015 Autumn
- 2014 Autumn
- 2013 Spring
- 2013 Autumn
- 2012 Spring
- 2012 Autumn
- 2011 Spring
- 2011 Autumn
- 2010 Spring
- 2010 Autumn
- 2009 Spring
- 2009 Autumn
- 2008 Spring
- 2008 Autumn
- 2007 Spring
- 2007 Autumn
- 2006 Autumn
Fakta
Emnekode
BØK260
Vekting (stp)
10
Semester undervisningsstart
Autumn
Undervisningsspråk
English
Antall semestre
1
Vurderingssemester
Autumn
Content
- Introduction - course context in economy and financial markets
- Cash flows
- Interest calculation / financial mathematics
- Decision criteria (Net present value, internal rate of return, payback, etc.)
- Risk and return
- Cost of capital
- Market efficiency
- Financing of investments
- International finance
- Options
- Risk management
Learning outcome
Knowledge
On completion of the course, students will be able to understand:
- General principles of investment analysis
- Why we focus on cash flows and not profit
- Discount rate / cost of capital
- The various decision criteria for an investment. NPV, IRR, etc
- The concept of total risk, and how it is determined
- Portfolio theory and its significance for diversification.
- Beta and the Capital Asset Pricing Model (CAPM)
- Weighted Average Cost of Capital (WACC) and when to use it
- Market efficiency
- Options and risk management in international finance
Skills
Upon completion of this course, students will be able to:
- make investment calculations and decisions for projects
- apply discounting rules
- use various decision criteria for both equities and bonds
- apply the portfolio theory to different investment options and calculate Beta
- apply the CAPM model
- calculate the weighted average cost of capital
- calculate the present value of investment projects and discuss risk in investment decisions
- evaluate different financing options
- evaluate options and arbitrage opportunities (as opposed to estimating option premiums)
Forkunnskapskrav
Financial accounting - principles and analysis (BØK102)
Financial and management accounting - an introduction (BØK195)
Anbefalte forkunnskaper
Exam
Form of assessment | Weight | Duration | Marks | Aid | Exam system | Withdrawal deadline | Exam date |
---|---|---|---|---|---|---|---|
Written exam | 1/1 | 3 Hours | Letter grades | None permitted, Standard calculator 1), Valid calculator | Inspera assessment | — | — |
1) Financial or graphing calculators NOT allowed
Vilkår for å gå opp til eksamen/vurdering
Fagperson(er)
Study Program Director:
Tarjei Mandt LarsenCourse coordinator:
Olga Aleksandrovna RabanalMethod of work
Overlapping
Emne | Reduksjon (SP) |
---|---|
Corporate Finance (BØK260_2) , Capital investment and decision theory (ØK0111_1) | 2 |
Corporate Finance (BØK260_2) , Managerial Finance (NH0523_1) | 6 |
Corporate Finance (BØK260_2) , Managerial Finance (NH0523_A) | 6 |
Corporate Finance (BØK260_2) , Financial management (ØK0012_1) | 6 |
Corporate Finance (BØK260_2) , Finance 1 (ØK0012_2) | 6 |
Corporate Finance (BØK260_2) , Finance 1 (ØK0012_A) | 6 |
Finance 1 (BØK130_1) , Corporate Finance (BØK260_2) | 10 |
Economic analysis (BHO200_1) , Corporate Finance (BØK260_2) | 5 |
Corporate Finance (BHO395_1) , Corporate Finance (BØK260_2) | 10 |
Corporate Finance in the hospitality industry (BHO395_2) , Corporate Finance (BØK260_2) | 10 |